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Wednesday, March 27, 2019

DaIly update 3/27 Blue, Red and Grey: Yield Curve Inversions

SPX held 2800 again.

The bulls tried out of the gate to rally the market again.  However, the sellers showed up to sell into the strength.  Mid morning they took control and sent SPX down to test the 3/25 low.  The selling stopped there and dip buyers rushed in to send SPX back above 2800.  Breadth was -53%.  New highs were stable at 142.  New lows picked up a bit to 30.  SPX first crossed above 2800 this year on 2/25.  Over the last month SPX has gone nowhere. 

The 20 SMA appeared to act as resistance today.  The futures are trying to hang on to the 50 SMA.  Will they break the 20 or 100 SMA first?

The red count crossed back above the green line.  There is some indecision here at the moment.

SPX has been stuck around 2800 for the last month.  It tried to sell off and it tried to break out above the highs from last fall.  Both moves failed.  I believe investors are hesitant to sell in case a trade deal with China is released.  At the same time, I think they are hesitant to buy because of the slowing global economy.  I don't know if a trade deal will be reached.  I do know the global economy is truly slowing.  I think it is getting close to stall speed.  I guess the market wants some clarity before proceeding one way or the other.  I have no idea when that might come.

Interesting look at past yield curve inversions and what SPX did.  Blue, Red and Grey: Yield Curve Inversions


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